What is Employee Monitoring? The Complete Guide

Over 70% of companies now use some form of employee monitoring software.

And as remote and hybrid work models become the standard, businesses are turning to digital tools to keep operations on track and safeguard sensitive information.

But what exactly is employee monitoring, and how does it affect both employers and employees?

Here, we’ll explore what employee monitoring is, the reasons behind its rise, the methods used, and how organizations can implement it responsibly.

In this article

• What is employee monitoring?
• Different types of employee monitoring
• Employee monitoring advantages and disadvantages
• Legal and ethical considerations of monitoring employees

What is Employee Monitoring: The Definition

Employee monitoring is watching over employees' activities during work hours. It’s more like following a worker every step of the way in productive workplaces.

Employee monitoring enables business leaders to supervise worker activity, website & app usage, behavior, and performance.

The primary function of staff monitoring is to track productivity and improve it.

Other important reasons are performance evaluation, data protection, security, and compliance.

In other words, it is not to keep the employees on task, but to protect your business.

See, workforce tracking is not new. It started with the Industrial Revolution in the late 1700s.

But today's tools are considerably more sophisticated. The methods of employee monitoring are more robust, and nearly 78% of managers utilize time-tracking software.

With this popularity, employee monitoring systems are now generating tons of revenue.

The market was valued at $2.80 billion in 2023. And is projected to reach $3.30 billion by 2024. Experts believe that by 2028, this market will hit $6.45 billion at a compound annual growth rate (CAGR) of 18.2%.

Needless to say, almost all remote businesses (96%) use these technologies.

And the demand for employee oversight is now extended to automate payroll, project management, workforce optimization, etc.

At present, employee monitoring systems have become super advanced. Now, company executives can manage remote employees or field staff easily. All thanks to the blend of physical and digital technology usage.

This way, they have more productive employees wherever they are.

Types of Employee Monitoring

It started with just attendance tracking that had employee clock-in/out times, leaves, and breaks. But now the attendance systems have become automatic.

Here are the details of the most commonly used employee monitoring types.

Time Tracking and Productivity Monitoring

The employee monitoring solutions let you measure the time to complete a task.

In addition, with the project management software, you will know how individual employees work. And how efficiently they manage the tasks.

For example, project management software allows you to visualize scheduled and delayed tasks.  Thus, it gives a clear view of project progress.

You can also use productivity reports to highlight areas that need more focus to improve. This observation lets you notice employees who need more help or training.

Time Clock System

The time clock system in modern employee monitoring technologies shows when employees start & stop working. Also, it tracks the time spent working on specific projects or activities.

You can see where the employees' focus is and where the time is being wasted.

Activity Level Tracking

Employee tracking software has an activity log tracker. It is a subsidiary feature of time tracking. It measures the employee engagement with their assigned tasks. Logs mouse movements and key presses.

Overall, how much an employee is active during work hours is calculated based on this data.

This is to ensure company resources are utilized properly. Works like a charm for remote teams, too.

Idle Time Monitoring

The time without any activity is idle time. It’s also a part of productivity measurement. Employee monitoring systems are smart now. They detect breaks and real work pauses.

Pro tip: Get further details of employee’s internet usage and activity monitoring.

Computer Activity Tracking

And with tools like Apploye, bosses can see what their workers are doing, even if they’re working from home or at the office.

Managers check what workers do in a few ways. They take random pictures of their screens (60%). They block some websites and apps (54%). They also watch what workers type (44%). [Source: Zippia]

Screen Capture and Recording

This feature helps employers to understand how an employee utilizes his/her company time. Screen monitoring shows how much time is spent on work-related tasks.

Therefore, these are valuable to managers in understanding the workflows.

That said, screen recordings clearly show an employee’s transition between tasks. The moment a business owner finds out where processes slow down, it’s easy for him to take the necessary steps. It helps them run a business more efficiently.

Additionally, screen capture is helpful for security purposes.

For instance, if anyone opens an unauthorized site, it may be frozen in the system within seconds. Sometimes, it may lead to activities not related to work. Such as browsing on social networking sites or other websites unrelated to work.

Thus, the employer can maintain a positive work environment.

Keystroke Logging

Keystroke logging checks and counts every key press on a computer. It lists every input, such as passwords, chats, and documentation. Capturing mouse movement comes as a bonus.

These two features monitor computer activities during work.

For example, you can use them to determine whether the employee concentrated on the tasks. Or was absent-minded and did not attend to them.

However, these methods can be an invasion of privacy if not used correctly. They raise some ethical concerns, too.

Later in this article, we will discuss the legal implications and compliance.

Browser and Website Tracking

Now, owners can track employees' online activity and internet usage. This includes websites they visit, how long they stay on each page, and their browser history.

This prevents wasting time on non-work webpages.

Employee computer monitoring software can categorize productive and time-wasting websites.

A majority of staff use up 26 days a year, or 4 hours of office time, on tasks other than the job.

That’s a whole month of idle time for an organization.

This mostly happens due to distracting online activities on social media sites. Tracking browser activity allows employers to block these pages.

Application Usage Monitoring

Knowing what applications and software employees are using is real-time monitoring. This paints a clear picture of their sincerity.

It also gives an overview of which digital tools work best for your team to support their tasks and goals.

Employers can use spyware to track employee program usage.

For instance, using social media or other non-work activities apps indicates low productivity.

Also, it identifies which tools your employees depend on most and which they don’t use at all. So, you can replace them with better alternatives.

Digital Communication Monitoring

Employee Email Tracking And Analysis

So, external communication is a major concern. And email monitoring ensures sensitive data can not reach unintended recipients. It detects whether any insider threats are present in the company.

If suspicious activity turns up, you can immediately step in to limit potential damage. And take disciplinary action.

Email monitoring is not just surveillance. It is one sure way to protect your business proactively. Simply by ensuring communication runs without malicious activities. It helps you enhance professional security. And ultimately protects the company from risks by analyzing email usage.

Chat and Messaging Surveillance

Any business owner or employer can flag keywords in instant messages.

This way, they know if there’s any data leak, such as trade secrets. And take legal action.

Additionally, employee tracking software can track different messaging platforms. For example, it can eavesdrop on Slack, Teams, Messenger, WhatsApp, or other communication tools.

Video Call Monitoring

During virtual conferences, employers check out who workers are communicating with.

Modern employee monitoring platforms record calls in Zoom, Google Meet, or Teams. 73% of managers check these recordings to evaluate employee performance and ensure compliance.

They even analyze facial expressions. This helps to understand the stress levels of workers or whether they were distracted!

Physical Monitoring Solutions

GPS and Location Tracking

GPS tracking facilitates remote and hybrid work monitoring solutions. It can record routes, remote locations, including stops, and how long a field employee has spent at each stop.

For instance, UPS uses one of the most comprehensive location tracking systems. It’s called On-Road Integrated Optimization and Navigation (ORION).

In this system, each truck has many sensors that record things like seatbelt use and time spent at stops. It helps drivers make more deliveries, about 120 a day instead of 90.

Now the company saves 28 million miles and 3 million gallons of fuel annually. [Source: The New York Times]

These records help us understand how to plan. Then assess productivity to optimize routes or travel time further.

Additionally, geo-fencing lets you automate employee attendance tasks, track their time.

Also, it lets you see where your drivers, company vehicles, or field employees are at any given time. It is much easier to manage logistics and ensure they follow the best route and are most efficient in saving time and fuel.

GPS tracking boosts safety for your employees.

Hence, it minimizes risks to your employees and lets them feel secure.

Security Cameras and Video Surveillance

Video or CCTV cameras may sound old-fashioned. But it remains one of the most robust methods of determining work behavior. It helps to maintain a professional environment.

Beyond checking on attendance, video monitoring is the eyes and ears on the ground. It detects theft, unauthorized access, or unsafe behavior.

Also, using video cameras at work helps employees pay more attention to safety rules.

After all, CCTV monitoring is not just for surveillance. It creates a company culture where your team will work efficiently and feel secure.

Biometric Monitoring

The biometric system works on unique physical features, like fingerprints, faces, or irises. It can distinctly identify employees.

This system will give your business a better way of tracking when you or other co-workers clock in or out.

It can guarantee no time fraud, like "buddy punching".

Biometric monitoring brings added security value: only authorized employees can access certain areas.

Moreover, biometric data is much harder to compromise than badges or even a PIN code. In this regard, the system provides a secure way of maintaining accurate records.

Keycards

As an employer, you can monitor the whereabouts of employees through their keycard data. It logs entry/exit times within a company’s facilities.

With processes automated, this technology verifies attendance to enhance security protocols. It’s an effective deterrent method for real-time updates on employees.

Network and Data monitoring

Network Traffic Analysis

Network traffic analysis checks the data that flows through the systems, such as the company devices. The security teams use this feature to detect any cybersecurity threat.

Data Loss Prevention Systems

This type of monitoring is the heart of a company’s security against insider threats.

DLP system monitors and protects classified information and tracks its movement. Blocks any unauthorized access. This valuable tool prevents data breaches through a content inspection mechanism.

File Access and Transfer Monitoring

On the company computers, file opening, editing, and sharing are monitored. This allows security teams to act fast and stop data leaks. It tracks file movements across networks. Also, records timetables and user activity.

Phone Monitoring

Phone tracking lets you take the pulse of your business processes and puts you in control.

In today's connected world, tracking via phone is essential for your business to stay on top.

Phone monitoring makes task tracking easier. It can help with customer support, sales, marketing, and managing employees who work in the field or from home.

However, it becomes an invasion of your employee's expectation of privacy. So, you must balance gathering the much-needed insights without invading privacy.

Access Control Monitoring

Access control monitoring puts you in control from a central location.

You can know who has gained access to what part of your company and when. It serves as a proactive security measure catering to workplace dynamics.

Think of this system as a highly vigilant watchdog.

For example, if an employee tries to access a restricted system, the owner will get a notification as a warning.

Of course, it's not about distrust. Rather, it is about maintaining a secure environment.

These notifications may be the first indication of a security breach. Thus, it enables an immediate, effective response.

Employee Monitoring in Remote Work Environments

A survey found that 95.3% of Canadian companies let employees work from home. Also, 51.7% of these companies already allowed remote work before the COVID-19 pandemic.

So, during the COVID-19 pandemic, working from home has become trendy. It opened a new horizon in every industry worldwide. And it continues to evolve even today.

Following this trend, companies are using valuable tools to monitor workers. And the amounts are growing by the day.

For example, the number of remote employees rose to 20% from just 4% before the pandemic.

Also, the European Commission has concluded that 60% of remote workers go under digital supervision. The major part of it is invested in productivity tracking.

At Wells Fargo, employees were involved in deceptive behaviors. They allegedly used mouse jigglers to fake activity.

Once found out, the company immediately took action. And laid off accused workers. This stands to prove the importance of monitoring employees working from home. [Source: News.com.au]

For this reason, the ILO suggests that employers must do real-time monitoring openly.

Pros and Cons of Employee Monitoring

The Benefits of Employee Monitoring

When worker surveillance is done ethically, it can be very beneficial for your business.

For example, GitLab is a big company where everyone works from home. Named the "world's most productive remote team" by Hacker Noon, GitLab focuses on results over inputs.

They publish all their Objectives and Key Results (OKRs) to everyone. This way, all employees know exactly what matters to the company.

Being clear and focusing on results and not keyboard tracking helped Gitlab to complete more projects. Project completion went up by 35%.

Now, let’s see the advantages of monitoring employees correctly.

Boost Employee Performance

Studies show that employees spend about 2 hours a day, or 25% of a 9-hour workday, using company computers for personal tasks.

However, if managers monitor employee activities, they will not waste time.

In fact, companies that use employee monitoring software get a 50% reduction in time theft and a potential ROI of over 4000%.

As an employer, you may be concerned about performance during work hours. There might be high activity, but the expected output is far-fetched. The solution lies in reports and analytics from monitoring data.

You can point out gaps and take action. The matrices help evaluate who needs training or counseling, improving workforce productivity.

Better Time Management

Employee monitoring enables you to oversee team management.

The insights show performance on tasks, productivity levels, and completion times. It gives a breakdown of work and non-work-related activities.

Effective Team Management

For effective team management, balance workloads among members. Combine them with company goals, and assign the right persons to tasks.

Monitoring helps identify the working patterns of individuals.

Now, you can create diverse teams and assign tasks appropriately. It shows project status and improves collaboration.

Optimize Workforce and Resources

Workplace monitoring enhances workforce management and resources. When tracking work patterns, you know where time is consumed.

With monitoring, it's easy to allocate tasks fairly to avoid employee burnout.

For further read: Know the details of the benefits of employee monitoring.

Enhancing Security and Compliance

Monitoring can improve security against potential threats.

Just like cameras in stores prevent theft, workplace monitoring ensures safety. It protects against internal security threats by showing who accessed files and when.

Flexibility and Opportunity of Remote Work

Employee monitoring tools enable remote work. Companies can track tasks, workers, and overall company productivity from home.

This way, remote work opens opportunities for career growth.

Want to be the master of remote team management?

Try Remote Employee Monitoring Software

Drawbacks of Employee Monitoring

While you know all about the pros of employee monitoring systems, some employees are not in the same boat. Because they feel unsafe in sharing personal communications data.

Let’s check out the drawbacks of monitoring employees.

Privacy Concerns

Employees feel that tracking is like Big Brother watching.

This issue arises if monitoring extends beyond work hours. And spread to personal devices or activities. It can cause stress and demotivation.

Approximately 59% think that surveillance generates tension or worry. 41% have concerns about privacy as a result.

Trust Issue

Constant monitoring has a negative impact on the job.

Monitoring of employees creates 59% more tension in the workplace. This reduces attachment to work and organizational commitment.

As a result, it creates a stressful environment. This might lead to quitting, which is unhealthy for the company.

Impact on Workplace Morale

It's hard to relax and be creative when always being watched. And 41% feel lower productivity when employers monitor them.

With real-time monitoring, employees hesitate to try new approaches, sticking to routine tasks. It can harm morale and make a workplace feel stressful and less supportive.

Focused on Quantity over Quality

When everything is counted, emphasis shifts to quantity over quality.

If only quantity targets matter, people care less about quality. That brings lower standards.

Laws and Legal Considerations of Employee Monitoring

On legal grounds, companies can monitor workers in different parts of the world. But it must follow privacy rules.

In the USA, employers hold the right to check the computer use of employees. Read electronic communications and listen to calls, but only with a lawful basis.

That said, some states have stricter rules.

For example, Connecticut requires companies to let employees know about monitoring. Delaware has the same rules. This is because the ECPA only allows communication interception with consent from employees.

In the EU, things roll differently.

The GDPR rules are applied here. Companies must be open about monitoring. They are not allowed to collect too much data. Also, they require a valid reason to monitor employees in any form.

About 67% more companies started monitoring after COVID-19.

However, they face challenges. As much as they need to watch operations, they must maintain worker privacy.

Otherwise, you could have the same fate as Amazon. They employed AI-driven cameras to track productivity in warehouses.

Employees opposed this practice and eventually developed a public outcry. Not to mention the legal scrutiny.

A simple deviation from employment laws cost them trust, reputation, and €32 million. This is a lesson for other companies for years to come. [Source: BBC]

Ethical Considerations of Employee Monitoring

Ethical employee monitoring finds the balance between productivity goals and privacy concerns.

Watching over employees is a superpower. And any abuse will destroy employee morale. Introduce stress and legal requirements.

The 2021 European Commission report showed that 70% of employees revealed discomfort in the workplace. Only because of monitoring tools.

The major considerations to make employees comfortable:

Transparency: As an employer, let workers know what activities are monitored and why. If you fail at this, it will violate trust and data protection laws.

According to Forbes, 30% of employees say they are okay with monitoring as long as it's transparent and ethical.

Proportionality: Make sure to monitor only when necessary. Overdoing it is intrusive and impedes the positive work environment. The International Labor Organization (ILO) states that too much surveillance may restrain freedom.

Data Security: All the data collected during monitoring must be protected. Companies are responsible for minimal data retention and handling it securely. The Organization for Economic Co-operation and Development (OECD) firmly dictates this policy.

Consent and Feedback

Allow workers in policy development. It will improve acceptance and ensure ethical alignment.

Develop an Acceptable Employee Monitoring Policy With Best Practices

Every company should now build an acceptable use policy for monitoring. For this, several crucial components are needed to create effective approaches.

Inform and Get Consent: First off, inform your employees about surveillance up front. Approach to reach an agreement. Include specifics in company policies. Follow the EEOC transparency recommendations.

State Monitoring Scope: Use monitoring tools only for work-related matters. Concentrate on output rates. And keep an eye out for any security concerns. Track attendance as needed.

Responsible Data Handling: Deal with the collected individual information with care. Avoid too much supervision of employees.

Review and Update Policies Regularly: Check and update your policies once a year. That’s because laws change and technology evolves.

Secure Monitored Data: Protect all collected data properly. Follow the specified security frameworks like NIST recommendations. When implementing monitoring systems, it's advisable to consult with legal counsel. That’s to ensure compliance with all applicable regulations.

Conclusion

Employee monitoring optimizes efficiency. The result? More done with existing resources. At this point, it’s not a hypothesis anymore, it is essential to survive and grow.

That said, transparent and ethical monitoring empowers teams, secures data, and brings output to new heights.

Frequently Asked Questions About Employee Monitoring

Can my employer monitor my computer without telling me?

Yes, your employer can monitor your computer without telling you. Especially if it is company-owned. Many organizations utilize tracking software to monitor productivity. However, it’s illegal in the EU.

What is an example of workplace monitoring?

Employee email tracking is one type of workplace monitoring. Companies may also use software to track screen activity. They take screenshots or capture the screen while working.

What is the Best Employee Monitoring Software?

Apploye, stands tall as one of the best employee monitoring tools. Capterra data shows a 4.7 out of 5 rating. Teramind and ActivTrak are also two good options.

How do you monitor your employees?

An employee monitoring software does it all. The time-tracking feature is useful for keeping track of working hours and productivity. Also, regular check-ins help to ensure progress and resolve any difficulties that arise.

What is employee monitoring software for business?

Employee monitoring software monitors employee activity during working hours. It stores information such as visited websites, application monitoring, and time spent on tasks. Businesses use this data to increase efficiency and enforce policy compliance.

Is it necessary for a company to monitor employee devices?

Monitoring employee devices helps to protect company data. And guarantees correct device usage. However, it should respect employee privacy and adhere to legal rules.

What is real-time employee monitoring?

Real-time employee monitoring records employee action as it occurs. It tracks website visits, app usage, and keystrokes. This enables managers to ensure productivity and identify shortcomings immediately.

What is employee monitoring software?

Employee monitoring software monitors how employees use computers or other devices. Especially in the work hours. The software can track time, screen activity, and app usage.

What is the best employee monitoring and productivity tool?

Apploye is the most effective employee monitoring and productivity tool. It allows you to track time, take screenshots, record the screen, and monitor employee activity levels.

What is everything about remote employee monitoring software?

Remote employee monitoring software monitors overall employee activity, productivity, and efficiency in work from home. It records statistics such as time, program usage, and browser activity. This enables managers to maintain supervision and increase performance.

How does employee monitoring software fail to address cybersecurity threats?

Employee monitoring tools are brilliant at tracking user activity. But they often overlook hidden cybersecurity threats such as malware or network breaches. It also fails to detect complex assaults or system flaws.

Do you think employee tracking software is necessary in the workplace?

Yes, employee tracking software can be a positive addition. It enables managers to monitor work progress and spot problems early. However, it should be employed transparently to protect employee privacy.

How Does Employee Monitoring Software Work?

Employee monitoring software monitors computer activity such as browser history, which apps were used, and the time spent on a task. It runs in the background, so it doesn’t distract workers.

Why is employee monitoring software important?

Employee monitoring software provides a total report of work progress and productivity. It verifies that jobs are done on schedule and helps to spot potential issues early.